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Which one of the following with regard to the term ‘bank run’ is correct?

Correct Answer: A panic situation when the deposit holders start withdrawing cash from the banks

Explanation:

A bank run occurs when a large number of people withdraw their money from a bank, because they believe the bank may cease to function soon.


A banking panic or bank panic is a financial crisis that occurs when many banks suffer runs at the same time, as people suddenly try to convert their threatened deposits into cash or try to get out of their domestic banking system altogether.


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